Today, it is not just equities that reverted, but Treasuries and currencies.
All of them had a "crash - reversed crash" sequence.
What does it take to generate that sort of move?
We need central bankers to fear that the downtrend could become uncontrollable at a time when the Fed wants to raise rates.
I think that this is a well planned coordinated market rescue from central banks to avoid panic and leave open the possibility for the Fed to raise rates.
The question is: what's next? Not sure that a reversal can sustain itself without money continuing to come in.
Also, many stocks on my screen turned "limit down" 10%. This means that they cannot be shorted. This limit will be lifted in two days. I guess that if you plan to short the market, then Wednesday would be the day.
Pascal
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